iPhone to gain better Exchange, Lotus Notes support at SDK event

Following months of beta testing, Apple Inc. next week will address one of the key weakness of its iPhone handset by introducing improved support for enterprise level e-mail platforms from Microsoft and IBM, according to one Wall Street analyst.

In a note to investors on Thursday, American Technology Research analyst Shaw Wu cited "industry and developer sources" who say the Cupertino-based firm will use a portion of its media presentation next Thursday to announce improvements to the touch-screen handset's ability to work with Microsoft's Exchange server and IBM's Lotus Notes software.

"If true (which we believe is), this will prove key in having more enterprises and SMB adopt iPhone as their mobile platform," the analyst wrote. "What isn't as clear to us is how Apple will accomplish this, whether this is from internal development (most likely), third-parties including Microsoft (next likely) with its ActiveSync technology, or Research in Motion Blackberry Connect (possible but less likely), or a combination of two or more."

The iPhone's limited support of enterprise-level email solutions has been the subject of much criticism from business mobile phone users, as they must manually "pull" email messages from their corporate mail networks onto the handset. By contrast, Research in Motion's Blackberry smartphones are capable of automatically "pushing" the contents of a user's corporate email account to their embedded email applications. As such, the iPhone has struggled to wiggle its way into the workplace.

"We do not think it will be easy to replicate the robustness of Blackberry push e-mail, but nonetheless, we view improvements as positive," Wu added in his note to clients. "Other enhancements we are picking up including improved security, better support of VPNs, and enterprise applications such as CRM."

While details surrounding Apple's plans for improved Exchange support are limited, several bits of information have recently surfaced on IBM's intent to support its Lotus email and calendar applications on the iPhone.

Specifically, it's said that IBM will offer its Lotus Notes e-mail package for both the iPhone and iPod touch. The software will reportedly be free for users who already have a Lotus Web-access license and start at $39 per year for new users.

In addition, IBM also plans to release Lotus Notes and its free Lotus Symphony "productivity" package -- which includes documents, spreadsheets and other Microsoft Office-like software -- for Apple's Mac computer line.

Any Exchange support will help sell iPhones. Without the ability to remotely disable a lost or stolen phone, many corporations wouldn't adopt iPhone as their mobile platform of choice. (This problem is not, however, insurmountable, and the SDK might make it possible to address it.) HOWEVER, individuals who work for corporations and are still on the hook for paying for their own phone now have another compelling reason to buy an iPhone.

In addition to email, there is also the issue of Exchange calendars, contacts, notes and tasks. Business users want live access to this information on the iPhone, rather than syncing after the fact. Anyone who has tried using Outlook Web Access on a 3 inch screen knows that OWA is not an acceptable substitute for true mobile support.

And what about the iTunes activation requirement? Are corporations going to be responsible for creating iTunes accounts and providing credit card numbers for each of their iPhone users? Are corporations who routinely lock down end user PC's now going to start putting iTunes on all their PC's?

Not sure if this is a new development or not, but there is an "Exchange" option if you set up a new email account on the iPhone and choose "other" when you do. You're then given an option to set up an exchange account. Is that new?

Not sure if this is a new development or not, but there is an "Exchange" option if you set up a new email account on the iPhone and choose "other" when you do. You're then given an option to set up an exchange account. Is that new?